Daiichi Sankyo Company, Limited Just Recorded A 223% EPS Beat: Here's What Analysts Are Forecasting Next

Daiichi Sankyo Company, Limited (TSE:4568) just released its half-year report and things are looking bullish. The company beat forecasts, with revenue of JP¥883b, some 7.7% above estimates, and statutory earnings per share (EPS) coming in at JP¥76.83, 223% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Daiichi Sankyo Company

Taking into account the latest results, the consensus forecast from Daiichi Sankyo Company's 15 analysts is for revenues of JP¥1.83t in 2025. This reflects an okay 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to descend 12% to JP¥117 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.81t and earnings per share (EPS) of JP¥113 in 2025. So the consensus seems to have become somewhat more optimistic on Daiichi Sankyo Company's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥6,515, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Daiichi Sankyo Company analyst has a price target of JP¥7,600 per share, while the most pessimistic values it at JP¥5,500. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Daiichi Sankyo Company's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% annually. Even after the forecast slowdown in growth, it seems obvious that Daiichi Sankyo Company is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Daiichi Sankyo Company following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Daiichi Sankyo Company going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.